Dick's Sporting Goods Shares Sink After Same-store Sales Miss

By Tonya Garcia Markets MarketWatch Pulse

Dick's Sporting Goods Inc. shares sank 9.6% in Tuesday premarket trading after the retailer reported first-quarter same-store sales that were below consensus. Net income was $58.2 million, or 52 cents per share, up from $56.9 million, or 50 cents per share, for the same period last year. Adjusted EPS was 54 cents, meeting the FactSet consensus. Sales were $1.83 billion, up from $1.66 billion in the prior period and in line with the FactSet consensus. E-commerce sales increased 11%, accounting for 9.3% of total sales, compared with 9.2% for the same period last year. Same-store sales rose 2.4%, below the 3.5% FactSet consensus. Dick's expects second-quarter EPS in the range of 98 cents to $1.03, and adjusted EPS in the range of $1.02 to $1.07, compared to a 99-cent FactSet consensus. Same-store sales are expected to increase 2% to 3% while FactSet expects a 3% increase. Dick's expects full-year EPS in the range of $3.59 to $3.69, and adjusted EPS in the range of $3.65 to $3.75. The FactSet consensus is $3.72. Same-store sales are expected to increase 1% to 3% against a FactSet consensus for a 2.7% increase. The company plans to open 43 Dick's stores, eight Golf Galaxy stores, and eight Field & Stream stores. Dick's shares are down 10.4% for the year so far while the S&P 500 index increased 7.3% for the period.

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